Name of the Project
Mahenge Liandu graphite project.

Location
Tanzania.

Project Owner/s
Armadale Capital.

Project Description
The Mahenge Liandu deposit is one of the highest-grade, large-flake deposits globally after the recent upgrade to 51.1-million tonnes at 9.3% total graphitic carbon (TGC), including 38.7-million tonnes in the indicated category at 9.3% TGC and 12.4-million tonnes in the inferred category at 9.1% TGC.

The scoping study completed on the project is based on a throughput of 400 000 t/y, producing an average of 49 000 t/y of high-quality graphite products during a 32-year life-of-mine.

The deposit has a low average strip ratio of 1:1 for the life of the mine and a very low operating cost of $408/t. There remains significant scope to further improve returns using staged expansions, as the current mine plan is based on about 25% of the total resource.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of $348.7-million and an internal rate of return of 122%, with a payback of 1.2 years.

Capital Expenditure
The project has a low development capital expenditure of $34.9-million.

Planned Start /End Date
Not stated.

Latest Developments
Armadale Capital has provided an update regarding its plans to commercialise the Mahenge Liandu graphite project, ahead of the expected completion of a definitive feasibility study in the fourth quarter.

The company has confirmed that key meetings with current and prospective Chinese offtake and project finance partners are scheduled for. Armadale hopes that these will progress to binding agreements.

Meanwhile, the company continues to review the graphite plant design, which has a capacity of 400 000 t/y, together with Chinese partners to ensure it is an optimal and efficient facility.

A graphite resource update for the project will be published by the end of June.

The company plans on starting production in 2021.

Key Contracts and Suppliers
Battery Limit (scoping study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Armadale Capital, tel +44 20 7236 1177 or email info@armadalecapitalplc.com.